Financial Development and the Relief of Corporate Financing Constraints in China——Analysis Based on Dynamic Panel Data with System GMM Estimation

This paper conducts a dynamic panel analysis of the impacts of financial development on corporate financing constraints using panel data from Chinese listed firms during the period 2003-2007.The results show that:(1) Financing constraints does exist in listed firms of china;(2) Financial development has reduced firm's financing constraints,and financing constraints in the listed firms controlled by private individuals is more obviously released than that of listed firms controlled by the state;(3) The functions of financial intermediation development in the relief of financing constraints is much larger than that of securities market development.